{"id":31989,"date":"2023-11-06T21:52:55","date_gmt":"2023-11-07T01:52:55","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=31989"},"modified":"2023-11-06T21:52:55","modified_gmt":"2023-11-07T01:52:55","slug":"crypto-forecast-analyst-predicts-santa-claus-squeeze-may-deliver-year-end-gains","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/11\/06\/crypto-forecast-analyst-predicts-santa-claus-squeeze-may-deliver-year-end-gains\/","title":{"rendered":"Crypto Forecast: Analyst Predicts \u2018Santa Claus Squeeze\u2019 May Deliver Year-End Gains"},"content":{"rendered":"

Markus Thielen, the Head of Crypto Research and Strategy at Matrixport, has hinted<\/a> at a potential pre-Christmas rally with Bitcoin leading the charge. <\/p>\n

This anticipation comes amid a backdrop of macroeconomic shifts that could set the stage for a significant surge in crypto prices, which Thielen describes as the \u201cSanta Claus squeeze.\u201d<\/p>\n

Thielen\u2019s analysis is rooted in recent market movements where some altcoins began to outperform Bitcoin, suggesting a momentum build-up that could translate into substantial gains.<\/p>\n

Macroeconomic Indicators Fueling Crypto Optimism<\/h2>\n

This concept of a \u201cSanta Claus squeeze\u201d in the crypto market, a term coined to describe the seasonal rally often seen in equity markets, is not new. Thielen, in his Deribit Insights report, noted that Bitcoin has historically seen an average rally of 23% during the festive months of November<\/a> and December. <\/p>\n

This trend, coupled with last week\u2019s performance where alternative cryptocurrencies gained an edge over Bitcoin, lends credibility<\/a> to the forecast of a year-end rally, according to\u00a0the Head of Crypto Research and Strategy at Matrixport.<\/p>\n

Notably, the potential for a \u201cSanta Claus squeeze\u201d is underpinned by several macroeconomic indicators that Thielen has identified. Thielen points to a trio of events that collectively signal an interest rate peak, setting a conducive stage for risk assets like cryptocurrencies. <\/p>\n

The US Treasury\u2019s pivot towards \u201cslowing the pace of issuing longer-dated debt\u201d is the first sign Thielen identified, \u00a0implying expectations for a decline in interest rates, which historically benefit growth assets such as tech stocks and, by extension, digital currencies.<\/p>\n

Adding to the mix is Federal Reserve Chair Jerome Powell\u2019s \u201cdovish\u201d tone at the post-FOMC meeting press conference<\/a>. His statements have been interpreted as a potential halt in rate hikes, with the possibility of cuts in 2024, bringing a dose of positiveness into the markets.<\/p>\n

For context, during the conference, Fed Chair Jerome Powell discussed the balanced nature of inflation risks, referencing the term \u201csymmetric\u201d twice, which suggested a tone of accomplishment in the Federal Reserve\u2019s efforts to reduce inflation. Additionally, Powell expressed his view that a recession is not on the horizon.<\/p>\n

Furthermore, a less-than-stellar US nonfarm payroll reported last Friday suggests a \u201cweakening labor market,\u201d according to Thielen, reducing the chances of aggressive rate hikes in the future.<\/p>\n

Bitcoin And Ethereum: A Potential Rally In Sight?<\/h2>\n

Drawing parallels with the past, Thielen recalled Bitcoin\u2019s response at the end of the last Fed rate hike cycle in January 2019, which saw the cryptocurrency\u2019s price rally by approximately 400%. <\/p>\n

While Thielen tempers expectations for a repeat of such dramatic gains, the Head of Crypto Research and Strategy at Matrixport anticipates that Bitcoin and some other altcoins the analyst<\/a> calls \u201chigher beta crypto assets\u201d could see considerable growth in the coming years. <\/p>\n

The Head of Crypto Research and Strategy at Matrixport backed this bullish outlook<\/a> further by the potential approval of a BlackRock spot Bitcoin ETF, which could act as a catalyst for a more widespread crypto rally.<\/p>\n

Thielen\u2019s observations extend beyond Bitcoin in another report<\/a>. He notes the Ethereum ecosystem\u2019s nascent signs of recovery, evidenced by increasing revenues and ETH\u2019s resilience in holding the crucial support level of $1,550. <\/p>\n

The analyst also noted the outshining of Ethereum<\/a> and other altcoins over Bitcoin, a shift reflected in their growing market dominance and trading volumes. The perpetual futures funding rate for both Bitcoin and Ethereum is also on the rise, mirroring a more confident stance among traders.<\/p>\n

So far, Bitcoin is only up 1.3% in the past week and 0.3% in the past day, while Ethereum has recorded a higher gain of 5% in the past 7 days and 1% over the past 24 hours. BTC currently trades at $34,987 and ETH \u00a0at $1,897 at the time of writing.<\/p>\n

Featured image from Unsplash, Chart from TradingView<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

Markus Thielen, the Head of Crypto Research and Strategy at Matrixport, has hinted<\/a> at a potential pre-Christmas rally with Bitcoin leading the charge. <\/p>\n

This anticipation comes amid a backdrop of macroeconomic shifts that could set the stage for a significant surge in crypto prices, which Thielen describes as the \u201cSanta Claus squeeze.\u201d<\/p>\n

Thielen\u2019s analysis is rooted in recent market movements where some altcoins began to outperform Bitcoin, suggesting a momentum build-up that could translate into substantial gains.<\/p>\n

Macroeconomic Indicators Fueling Crypto Optimism<\/h2>\n

This concept of a \u201cSanta Claus squeeze\u201d in the crypto market, a term coined to describe the seasonal rally often seen in equity markets, is not new. Thielen, in his Deribit Insights report, noted that Bitcoin has historically seen an average rally of 23% during the festive months of November<\/a> and December. <\/p>\n

This trend, coupled with last week\u2019s performance where alternative cryptocurrencies gained an edge over Bitcoin, lends credibility<\/a> to the forecast of a year-end rally, according to\u00a0the Head of Crypto Research and Strategy at Matrixport.<\/p>\n

Notably, the potential for a \u201cSanta Claus squeeze\u201d is underpinned by several macroeconomic indicators that Thielen has identified. Thielen points to a trio of events that collectively signal an interest rate peak, setting a conducive stage for risk assets like cryptocurrencies. <\/p>\n

The US Treasury\u2019s pivot towards \u201cslowing the pace of issuing longer-dated debt\u201d is the first sign Thielen identified, \u00a0implying expectations for a decline in interest rates, which historically benefit growth assets such as tech stocks and, by extension, digital currencies.<\/p>\n

Adding to the mix is Federal Reserve Chair Jerome Powell\u2019s \u201cdovish\u201d tone at the post-FOMC meeting press conference<\/a>. His statements have been interpreted as a potential halt in rate hikes, with the possibility of cuts in 2024, bringing a dose of positiveness into the markets.<\/p>\n

For context, during the conference, Fed Chair Jerome Powell discussed the balanced nature of inflation risks, referencing the term \u201csymmetric\u201d twice, which suggested a tone of accomplishment in the Federal Reserve\u2019s efforts to reduce inflation. Additionally, Powell expressed his view that a recession is not on the horizon.<\/p>\n

Furthermore, a less-than-stellar US nonfarm payroll reported last Friday suggests a \u201cweakening labor market,\u201d according to Thielen, reducing the chances of aggressive rate hikes in the future.<\/p>\n

Bitcoin And Ethereum: A Potential Rally In Sight?<\/h2>\n

Drawing parallels with the past, Thielen recalled Bitcoin\u2019s response at the end of the last Fed rate hike cycle in January 2019, which saw the cryptocurrency\u2019s price rally by approximately 400%. <\/p>\n

While Thielen tempers expectations for a repeat of such dramatic gains, the Head of Crypto Research and Strategy at Matrixport anticipates that Bitcoin and some other altcoins the analyst<\/a> calls \u201chigher beta crypto assets\u201d could see considerable growth in the coming years. <\/p>\n

The Head of Crypto Research and Strategy at Matrixport backed this bullish outlook<\/a> further by the potential approval of a BlackRock spot Bitcoin ETF, which could act as a catalyst for a more widespread crypto rally.<\/p>\n

Thielen\u2019s observations extend beyond Bitcoin in another report<\/a>. He notes the Ethereum ecosystem\u2019s nascent signs of recovery, evidenced by increasing revenues and ETH\u2019s resilience in holding the crucial support level of $1,550. <\/p>\n

The analyst also noted the outshining of Ethereum<\/a> and other altcoins over Bitcoin, a shift reflected in their growing market dominance and trading volumes. The perpetual futures funding rate for both Bitcoin and Ethereum is also on the rise, mirroring a more confident stance among traders.<\/p>\n

So far, Bitcoin is only up 1.3% in the past week and 0.3% in the past day, while Ethereum has recorded a higher gain of 5% in the past 7 days and 1% over the past 24 hours. BTC currently trades at $34,987 and ETH \u00a0at $1,897 at the time of writing.<\/p>\n

Featured image from Unsplash, Chart from TradingView<\/p>\n

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